A BATTLE raging between two large corporations is threatening to hold up the multi-million pound regeneration of Middleton town centre for up to 12 months.

A row between Tesco, and transport firm First has already delayed work on the long-awaited food giants' new super store.

Now a public inquiry is to be set up later this year to decide the way forward - but it could take up to a year to resolve the issue.

In 2002 Rochdale Development Agency and Rochdale MBC successfully negotiated a development agreement with Tesco for a retail-led regeneration scheme that would provide a new town centre superstore together with new civic and leisure facilities - to be renamed the Middleton Arena - to replace the existing out-dated provision.

The superstore chain wants to begin work as soon as possible but First has objected to the plans because they include road closures in the town centre which, it says, could greatly affect its business.

After the recent completion of Middleton's new £4.5m bus station, which included major route changes in the town centre, the bus company is now being asked to re-route more of its services permanently to allow Tesco to begin construction.

But First says that it will lose a substantial amount of money if it has to make concessions by creating diversions on a permanent basis, thereby effectively under-performing.

A spokesman for First said: "It is not an objection to Tesco but the way it will affect the buses.

"If some streets are going to be closed permanently we are asking for more stops on a different street but this has not been acceptable which is why it is going to public inquiry"

Tesco says it cannot start building work until it comes to an agreement with the bus company.

For the past four years Middleton's residents have been waiting for work to begin on the new shopping centre which is expected to kick-start the regeneration of the town centre.

The huge store is expected to be built on the site of the existing civic and leisure facilities on Suffield Street with new leisure facilities being built on the other side of Assheton Way.

A council spokesman said: "A public inquiry on the re-routing of the bus lane is set for December. We are hopeful that work on the next stage of redevelopment in Middleton town centre will get underway in spring next year.

"The existing leisure facilities in the town centre will remain until the building of the new civic and leisure centre is complete. Once the new centre is open, building work on the new Tesco store will go ahead."